Midland-based Diamondback Energy this week raised 2023 production guidance after outperformance in the third quarter. Production in 3Q was 452,800 boed (up about 3,000 boed from 2Q) and 266,100 b/d of oil – both above high end of guidance. Travis D. Stice, chairman and CEO, said Monday, “We are increasing our full year oil and total production estimates above their prior ranges.” Diamondback raised midpoint of annual daily oil production to 263,000 b/d (from 261,000 b/d) and midpoint of annual total daily production to 447,000 boed (from 440,000 boed).
Stice said production is expected to continue to grow in 4Q. “We continue to expect to grow oil production organically at a low single digit annual pace next year with a similar level of activity to this year. This is primarily a result of the quality of the acreage we are developing in the Midland Basin with long laterals, multi-well pads and a high mineral interest across the portfolio.”
Diamondback said capex in 3Q was $684 million (upper half of guidance), and fullyear 2023 cash capex guidance is $2.66 billion to $2.70 billion. Diamondback is on pace to drill 340-to-350 wells this year and complete 325-to-335 at average lateral of 11,000 feet. Capex will continue to focus on Martin County.